How the 2022 Federal budget will impact car buyers throughout Canada

How the 2022 Federal Budget will Impact Car Buyers in Canada

Posted by on Apr 26, 2022 - Archived under Uncategorized

Anyone in Binbrook who is thinking about buying a new car will need to decide on whether they are getting an internal combustion engine (ICE) or an all-electric. While hybrid vehicles like the plug-in Jeep Wrangler 4X-E have the best of both worlds, you will also need to determine what works for your budget.


The federal budget has allocated billions to automakers in Canada to help with the transition over to all-electric vehicle production.


But that will take years, maybe decades, before it becomes mainstream, even when the federal government attempts to ban the production of gas-powered cars.


So, while electric-powered vehicles may be the future, your next car is most likely going to be either a conventional gas-powered or hybrid.


Inflation has driven up used and new car prices


While the Federal Government and the Bank of Canada try to tackle runaway inflation, prospective car buyers will need to dig deep to realize their car buying goals.


Budgeting for your new car


You will need to review your budget to make sure there is room for the new car and everything else.


Inflation has driven up costs by 5.1%, but chances are your income did not increase by 5.1%, so you need to trim the fat wherever you can.


While working on your budget, you should allocate at least $500 per month for your car payment.


Of course, this monthly payment is just for the car; you also need to factor in insurance, gas, and maintenance, which could easily add another $500 to your total costs.


Getting the best financing terms for your new car


No one has enough cash on hand to buy a new car outright, so you will need to get a loan.


The first thing you need to look at is your credit score to see whether you qualify as a prime or subprime borrower.


To qualify for the most competitive interest rates, you need a credit score of 720 or higher, but if your credit score is over 600, you should be able to get a decent car loan.


There are some things you can do to boost your credit score if it is on the low side. The easiest way to boost your credit score is to just make your payments on time and not carry too much debt.


By sticking with these simple suggestions, your credit score will start to increase.


Where to find the most competitive automotive loans in Binbrook


If you want to secure the most competitive car loans in Binbrook, you will not be able to get a decent deal online.


The best source of car loans is by going through a local car dealership. The dealership will be able to help you get the best loan, even if your credit is bad.


The dealership also has professional credit experts on staff; they can give you advice on how to improve your credit score so you never have to worry about getting a bad credit car loan again. Now that you know how to get a great car deal, you should contact a local dealership today.


Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you find a vehicle suited to your needs and will work with you no matter your credit score. 


For any questions or concerns, please don’t hesitate to contact us here! 


Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!  



Dixie Auto Loans